Income taxes (Tables)

12 Months Ended

Jun. 26, 2026

The Company’s income before income taxes consisted of the following:


	Years Ended
(in thousands)	June 26, 2026		June 27, 2025		June 28, 2024
Thailand	$	35,668	$	29,983	$	12,775
International	519,445		325,197		298,579
Total income before income taxes	$	555,113	$	355,180	$	311,354

Schedule of Income Tax Expense

The Company’s income tax expense consisted of the following:


	Years Ended
(in thousands)	June 26, 2026		June 27, 2025		June 28, 2024
Current	$	84,223	$	27,812	$	11,993
Deferred	(2,137)		(5,159)		3,180
Total income tax expense	$	82,086	$	22,653	$	15,173

Schedule of IncomeTax Paid

Cash paid for income taxes, net of refunds received, by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the year ended June 26, 2026 is as follows:


	Years Ended
(in thousands)	June 26, 2026
Thailand	$	10,069
Foreign
United States	12,504
China	6,538
Other foreign jurisdictions	294


Total income tax paid	$	29,405

Schedule of Reconciliation between Taxes that Would Arise by Applying Statutory Tax Rate of Country of Principal Operations to Effective Tax Charge

Beginning in fiscal year 2026, the Company adopted ASU 2023-09 prospectively. The reconciliation between the Company’s taxes that would arise by applying the statutory tax rate of the country of the Company’s principal operations, Thailand, to the Company’s effective tax charge is shown below:


	Years Ended
(in thousands)	June 26, 2026
	Amount		Percentage
Thailand statutory tax rate	$	111,023	20.0	%
Foreign tax effects
United States
Tax rate differential	4,024		0.7	%
Non-deductible expenses	2,400		0.4	%
Other	(1,745)		(0.3)	%
Cayman Islands
Tax rate differential	(88,976)		(16.0)	%
Other	22		0.0	%
Other Foreign Jurisdictions	(246)		(0.0)	%
Enactment of new tax laws
Pillar Two Top-up Tax	57,447		10.3	%
Non-taxable or non-deductible items	(4,948)		(0.9)	%
Changes in unrecognized tax benefits	3,085		0.6	%
Effective tax rate	$	82,086	14.8	%

The following table presents a reconciliation of the Company's effective tax rate to the statutory Thailand tax rate for the periods indicated, in accordance with the guidance prior to the adoption of ASU 2023-09:


	Years Ended
(in thousands)	June 27, 2025		June 28, 2024
Income before income taxes (1)	$	355,180	$	311,354
Tax expense calculated at a statutory corporate income tax rate of 20%	71,036		62,271
Effect of income taxes from locations with tax rates different from Thailand	(1,197)		(945)
Income not subject to tax (2)	(62,032)		(62,940)
Income tax on unremitted earnings	1,521		1,488
Non-deductible expenses	9,045		10,347
Foreign operations	2,426		(600)
Tax rebate from research and development application	(211)		17
Provision for uncertain income tax position	678		1,131
Utilization of loss and tax credits carryforward	—		—
Changes in valuation allowance (3)	—		3,759
Others	1,387		645
Corporate income tax expense	$	22,653	$	15,173

(1)Income before income taxes from domestic operations in the Cayman Islands amounted to $388.1 million, $263.0 million and $306.0 million for the years ended June 26, 2026, June 27, 2025 and June 28, 2024, respectively.

(2)Income not subject to tax relates to income earned in the Cayman and Mauritius Islands and income subject to an investment promotion privilege in Thailand. Income not subject to tax per ordinary share on a diluted basis was $2.24, $1.71, and $1.72 for the years ended June 26, 2026, June 27, 2025, and June 28, 2024, respectively.

(3)Changes in valuation allowances were due to adjustments based on management's assessment on the realizability of the related deferred tax assets.

Schedule of Deferred Tax Assets and Deferred Tax Liabilities, Net of Valuation Allowance

The Company’s deferred tax assets and deferred tax liabilities, net of valuation allowance, at each balance sheet date are as follows:


	As of
(in thousands)	June 26, 2026		June 27, 2025
Deferred tax assets:
Depreciation	$	647	$	2,368
Severance liability	6,603		5,981
Reserves and allowance	10,837		5,554
Net operating loss carryforwards	4,093		2,532
Others	2,617		452
Total	24,797		16,887
Less: Valuation allowance	(5,568)		(3,481)
Net deferred tax assets	$	19,229	$	13,406

Deferred tax liabilities:
Temporary differences from intangibles and changes in the fair value of assets acquired	$	(1,405)	$	(1,543)
Deferred tax from unremitted earnings	(2,511)		(2,141)
Others	2,262		2,089
Total	(1,654)		(1,595)
Net	$	17,575	$	11,811

Schedule of Changes in Valuation Allowances of Deferred Tax Assets

The changes in the valuation allowances of deferred tax assets were as follows:


(in thousands)	Valuation allowances of deferred tax assets
Balance as of June 30, 2023	$	3,824
Additional	3,613
Reduction	(3,824)
Balance as of June 28, 2024	3,613
Additional	823
Reduction	(955)
Balance as of June 27, 2025	3,481
Additional	2,087
Reduction	—
Balance as of June 26, 2026	$	5,568

Schedule of Changes to Unrecognized Tax Benefits

The changes to the Company’s uncertain income tax positions for the years ended June 26, 2026, June 27, 2025 and June 28, 2024, excluding interest and penalties, were as follows:


	Years Ended
(in thousands)	June 26, 2026		June 27, 2025		June 28, 2024
Beginning balance	$	1,846	$	1,249	$	1,288
Additions during the year	2,600		620		1,091
Release of tax positions of prior years	—		(23)		(1,130)
Ending balance	$	4,446	$	1,846	$	1,249